This month marks half a century since the first call from a mobile phone. At the same time, 2023 marks the 30th anniversary of its introduction in Ecuador. The respective concession contracts awarded in 1993, which were renewed in 2008 for another 15 years, will have a third-generation model.

The market for the so-called advanced mobile service, SMA, of 17.5 million active lines (13.7 prepaid modality) is distributed as follows: Conecel (Claro) 51.8%; Otecel (Movistar) 30.8%; and CNT EP 17.4%.

The process of renegotiation of SMA concessions begins five years before their expiration, but ends at the end. The state counterpart to the private operators is Arcotel, which has advice from the International Telecommunication Union, ITU; noting that such processes are carried out every year in the region and the world, so there are standards on the evaluation of the radioelectric spectrum that serve as a reference.

The theory suggests that there is a model that maximizes tax collection and, conversely, another that minimizes it to encourage universal service, reducing its cost to the subscriber. Ecuador favored the former, demanding, of course, coverage and connection obligations audited by Arcotel.

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The country is allocated 280 MHZ for SMA operation, while the regional average is 400. Furthermore, the state has not allocated 70% of the spectrum, so its use is insufficient and it does not monetize its use.

The functionality of the spectrum is similar to that of a bridge connecting a highway, which in this case are SMA digital networks or platforms; the problem is that if a bridge has only one track, it cannot serve a four-lane highway.

(…) operators want to get additional 30 MHZ to improve coverage and quality of 4G service…

In the renegotiations, the operators want to get an additional 30 MHZ in order to improve the coverage and quality of the 4G service, which is used by 72% of users, which is an indicator that must be improved. They want to extend their concession to 20 years, which is currently allowed by law (2015), as a sign of a public-private alliance that foresees the long-term investment needed to develop state-of-the-art networks. the most modern technology.

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A positive sign is the recent reform of the Frequency Charges Regulation, which has been in force for twenty years, and which has had the effect of increasing the cost of spectrum in rural areas, discouraging its coverage; absurd public policy.

The 3.5 GHZ band to provide 5G technology for the automation of production systems (the implementation of which is still distant for market reasons) is not included as part of the renegotiation, with the operator striving to be in order to be ahead of time, in the case of the two largest regional operators .

The Minister of Telecommunications, Vianna Maino, wants to conclude this process in July with certainty that will serve to support her “Connect the Unconnected” program, which has just received a well-deserved and acceptable recognition from the OAS. (OR)